Our last sales strategy post described 4 things that can ruin your sales quarter. In it we talked about a framework to understand how price increases affect sales and purchasing on the enterprise level: Bang – Clash – Clatter
Today we’ll talk about Bang!
Dramatic swings in many market spaces have occurred as disease (Covid), events (hurricanes, earthquakes, tsunamis), and war (Ukraine, Yemen) threaten enterprises around the globe. The swings are driven by changes in demand (affected by government shutdowns and disruptions), supply (logistics and sourcing problems), and market functions (tariffs/sanctions, currency fluctuation, trade pacts). These swings make price increases inevitable.
When world events drive costs up sellers must react to preserve margin or at the least to keep operations profitable. As much as purchasing is incented to keep prices down, sellers can’t maintain business arrangements that lose money. That leads us to the next part of our sales framework – Clash – What happens when sellers are forced to raise prices or otherwise change their sales arrangements.
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